CFTC action against binary options firm Yukom Communications remains stayed
The Commodity Futures Trading Commission (CFTC) does not seek to modify or lift the stay of its action against fraudulent binary options scheme Yukom Communications. This becomes clear from a status report filed by the regulator with the Illinois Northern District Court on November 4, 2022.
This Court has entered default pursuant to Fed. R. Civ. P. 55(a) as to all eight of remaining defendants. Specifically, default has been entered against five entities: Yukom Communications Ltd, Linkopia Mauritius Ltd., Wirestech Limited, WSB Investment Limited, and Zolarex Ltd., and three individuals: Yossi Herzog, Lee Elbaz, and Shalom Peretz.
The Commission has not yet sought default judgment under Fed. R. Civ. P. 55(b) against the Defaulted Defendants.
On October 27, 2021, this Court granted defendant Yakov Cohen’s Unopposed Motion to Stay and entered an order staying this case and holding Cohen’s obligation to file an answer in abeyance while the case is stayed.
At present, the parties do not seek to lift the stay of this action.
The Commission’s Complaint charges Cohen and the defaulted defendants with acting in concert in operating an illegal and fraudulent binary options trading scheme, and further alleges that Cohen, along with defaulted defendant Herzog, ultimately owned and controlled the Yukom Entities and masterminded the scheme.
The Complaint alleges that all defendants (i.e. Cohen and the Defaulted Defendants) are jointly and severally liable for the charged violations and seeks an order requiring defendants, as well as any successors thereof, to make full restitution to every person who has sustained losses proximately caused by the violations described in the Complaint and to disgorge all benefits received in connection with the charged violations, among other relief.